Require Exempt Employee to take days off...

Shara

Business is slow during the summer, and to control staffing our administrative team has asked all of our employees, including exempt managers, to take one day off per pay period (every two weeks) and to use PTO for that day. The rationale behind this decision is to show less productive time - even though everyone is still getting paid, the FTE's are down. Aside from the obvious morale issue, my concern is, does this jeopardize an exempt employee's status, to require them to take a PTO day? I know that if our managers run out of PTO that we must pay them anyway, so this might not work out all that well, but I wasn't sure if it could jeopardize their status by making them take off because of business conditions. Thanks in advance for taking a look at this!

stilldazed

Docking under a PTO policy is separate from the salaried basis. As long as the exempt salary is not docked in $$ for the day, the exemption should not be effected. In the PTO situation, what is being docked is hours from a bank of hours.

best wishes.